Reporter’s publisher accused of failing to live up to agreement
From STAFF REPORTS
Scottsboro Media Inc. is suing Southern Torch Inc. in DeKalb County Circuit Court for promissory fraud and material breach of the newspaper printing contract the two companies entered into in May 2023.
Scottsboro Media Inc. is a commercial printing company owned and operated by Patrick Graham, who is also the proprietor and publisher of The Sand Mountain Leader, the Mountain Valley News and the North Jackson Press in northeast Alabama, as well as The Walton Tribune and The Covington News in Georgia.
Southern Torch Inc. is a media company owned and operated by Nick Jones whose assets include The Sand Mountain Reporter, the Times-Journal and the Jackson County Sentinel. Jones and Southern Torch purchased the newspapers from Graham and his Alabama newspaper companies in May 2023, the same time the printing contract was entered into between Scottsboro Media and Southern Torch.
In the complaint, filed and served last week, the plaintiff alleges it and Graham’s other Alabama newspaper companies “entered into three separate asset purchase agreements pursuant to which Southern Torch acquired ownership of the Newspapers. As a part of those transactions, Plaintiff and Southern Torch entered into a Printing Contract.
“Under the Printing Contract, Southern Torch agreed to use the printing services provided by Scottsboro Media to print the Newspapers from May 1, 2023 through May 1, 2028.
“Southern Torch further agreed to use Scottsboro Media’s printing services on a substantially similar printing schedule as was previously used by Scottsboro Media for The Jackson County Sentinel, Fort Payne Publishing for the Times-Journal, and Sand Mountain Media for the Sand Mountain Reporter.
“Within months of acquiring the Newspapers, and in direct violation of the terms of the Printing Contract, Southern Torch began to drastically alter its printing schedule to reduce its use of Scottsboro Media’s printing services. Ultimately, Southern Torch stopped using Scottsboro Media’s printing services altogether.
“Southern Torch is in breach of the Printing Contract and Plaintiff is entitled to recover damages.”
The promissory fraud count from the plaintiff alleges that Southern Torch entered into the printing contract with no intention of honoring it but solely to ensure the purchase agreements for the newspapers were executed.
“At the time the Printing Contract was executed, Southern Torch had no intention of using Scottsboro Media’s printing services as set forth in the Printing Contract.
“Plaintiff, Fort Payne Publishing, and Sand Mountain Media would not have agreed to sell the Newspapers to Southern Torch but for Southern Torch’s acceptance of the terms of the Printing Contract.
“Southern Torch intentionally misled Plaintiff by entering into the Printing Contract in order to induce Plaintiff, Fort Payne Publishing, and Sand Mountain Media to sell the Newspapers.
“Plaintiff relied on Southern Torch’s fraudulent representations to its detriment and suffered damages as result.”
Scottsboro Media Inc. is seeking a judgment against Southern Torch for compensatory and punitive damages in an amount to be determined at trial; interest as allowed by law; costs of the action; and attorney’s fees and expenses.
Southern Torch has until the end of December to respond to the claim.
Jones did not immediately respond to a request for comment.
